We’re seven trading days into 2020, and so far the market has been behaving a lot like it did in 2019. Below we have broken up the S&P 500 into deciles (10 groups of 50 stocks each) based on stock performance in 2019. Decile one contains the 50 stocks that performed the best in 2019, while decile ten contains the 50 stocks that performed the worst in 2019. The 50 best-performing stocks last year are up the most on average so far in 2020 as well. Decile two has been the second-best decile so far this year, while decile three has been the third-best.
On the bottom end of the spectrum, the 50 worst-performing stocks in 2019 have actually bounced with an average YTD gain of 0.70%. But the 2nd and 3rd worst performing deciles in 2019 have averaged pretty steep losses so far this year. So, while investors have been sticking with the winners so far, they’ve also been doing a little bit of dumpster diving as well.
Market cap has seemingly been the most important factor in terms of performance so far this year. The 50 largest stocks in the S&P are up the most this year with an average gain of 1.22%. The next 50 stocks are up the second most with an average gain of 1.04%, and so on and so forth. The 50 smallest stocks in the S&P are down an average of 1.41%. Only deciles 5 and 6 are out of order or else there would be a perfectly uniform relationship between market cap and YTD performance. The larger, the better so far in 2020. To read Bespoke’s most actionable stock market research, start a two-week free trial to Bespoke Premium. You’ll unlock our most popular reports like our Morning Lineup, Model Portfolios, and Chart of the Day.